The Central Bank of Nigeria (CBN) has announced the immediate revocation of Heritage Bank Plc's license, citing the need to maintain a stable and healthy financial system. This action is authorized under Section 12 of the Banks and Other Financial Institutions Act (BOFIA) 2020.
According to a statement from Mrs. Hakama Sidi Ali, Acting Director of Corporate Communications at the CBN, the revocation was executed due to Heritage Bank's violation of Section 12 (1) of BOFIA 2020. "The bank’s Board and Management failed to improve its financial performance, posing a risk to the financial stability of the country. Despite various supervisory measures taken by the CBN to help the bank recover, Heritage Bank continued to struggle without any reasonable prospects of recovery," the statement read.
To uphold public confidence and the integrity of the financial system, the CBN has appointed the Nigeria Deposit Insurance Corporation (NDIC) as the Liquidator of Heritage Bank, as stipulated in Section 12 (2) of BOFIA 2020.
The CBN reassured the public that Nigeria’s financial system remains robust and secure despite the revocation, emphasizing that the decision was made to protect the overall financial health of the nation.
